Rugby Mining Proposes to Extend Warrants Expiry Date and Provides Update on Proximo Transaction

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VANCOUVER, British Columbia, Oct. 15, 2023 (GLOBE NEWSWIRE) — Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V: RUG) announces that subject to the acceptance by the TSX Venture Exchange (“TSXV”), the Company plans to amend the terms to 10,050,000 outstanding share purchase warrants (the “Warrants”) issued upon the closing of a financing announced on October 29, 2019.

The Warrants, with an exercise price of $0.17 per share and original expiry date of October 30, 2023, are proposed to be extended to expire on October 30, 2023, subject to the acceleration clause noted below.

The Warrants would still be subject to an acceleration clause which comes into effect when the closing price of the common shares of the Company on the TSXV is $0.25 or greater per common share during any 10 consecutive trading day period. In such event, the Company would accelerate the expiry of the Warrants to the date that is 30 days from the date of the issuance of a news release by the Company announcing the exercise of the acceleration right.

Additionally, the Company would like to provide an update on its proposed acquisition (the “Transaction”) of 100% of private Australian company Proximo Resources Pty Ltd (“Proximo”) (see news releases of July 26, August 24 and September 24, 2023).

As a condition to the Transaction and the final acceptance by TSXV of the transaction, the Company must, among other things, complete a concurrent private placement to raise a minimum of $2,500,000 (the “Offering”). The Company is pleased to report that it has received applications for subscription under the Offering in excess of the required minimum and expects the Offering, including the increase announced in the Company’s news release of September 3, 2023, to be fully subscribed.

Upon completion of the Offering and fulfilment of the other conditions listed in the conditional acceptance by the TSXV of the Transaction, which are anticipated to occur before the end of October 2023, and subject to final TSXV acceptance, the Company expects to be in a position to close the acquisition of Proximo.

For additional information, please visit the Rugby Mining Limited website at www.rugbymining.com

RUGBY MINING LIMITED

For further information, please contact:

CAUTIONARY STATEMENT

Certain of the statements made and information contained herein is “forward-looking information” within the meaning of Canadian securities legislation. This includes statements concerning the Company’s proposed acquisition of Proximo, plans at its projects including exploration plans for the Salvadora project in Chile, progress on obtaining approval for its exploration concession applications in Colombia, the expected timing of drilling and/or geophysics programs, budgeted costs to conduct exploration programs including drilling, high grade potential and potential for mineral discoveries at its projects and the style or occurrence of the mineralization which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. In addition, the proposed acquisition of Proximo is subject to regulatory approval and certain conditions precedent including completion of a capital raise of a minimum of $2,500,000. There can be no certainty that the proposed acquisition will proceed as planned or at all. The Company holds certain of its projects under option agreements, which require annual cash payments, expenditure and/ or drilling requirements in order to maintain its interest. Should the Company not be able to meet its obligations or renegotiate the agreements it will lose its rights under the option agreement. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information, including, without limitation, the effect on prices of major mineral commodities such as copper and gold by factors beyond the control of the Company; events which cannot be accurately predicted such as political and economic instability, terrorism, environmental factors and changes in government regulations and taxes; the shortage of personnel with the requisite knowledge and skills to design and execute exploration programs; difficulties in arranging contracts for drilling and other exploration services; the Company’s dependency on equity market financings to fund its exploration programs and maintain its mineral exploration properties in good standing; political risk that a government will change, interpret or enforce mineral tenure, environmental regulations, taxes or mineral royalties in a manner that could have an adverse effect on the Company’s assets or financial condition and impair its ability to advance its mineral exploration projects or raise further funds for exploration; risks associated with title to resource properties due to the difficulties of determining the validity of certain claims as well as the potential for problems arising from the interpretation of laws regarding ownership or exploration of mineral properties in the Philippines, Argentina, Chile and Colombia and in the sometimes ambiguous conveyancing characteristic of many resource properties, currency risks associated with foreign operations, the timing of obtaining permits to conduct exploration activities, the ability to conclude agreements with local communities and other risks and uncertainties, the ongoing effects of the COVID 19 virus and including those described in each of the Company’s management discussion and analysis and those contained in its financial statements for the year ended February 28, 2023 and the three months ended May 31, 2023 filed with the Canadian Securities Administrators and available at www.sedar.com. In addition, forward-looking information is based on various assumptions including, without limitation, assumptions associated with exploration results and costs and the availability of materials and skilled labour. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE